Challenges for the New Cohesion Policy nd joint EU Cohesion Policy Conference

Transcription

1 Challenges for the New Cohesion Policy Policy Conference Riga, 4-6 February 2015

2 Viktoriia Panova Karlstad University

3 Title Understanding the Operational Logics of Smart Specialisation and the Smart Implementation Choices for Regions in Europe

4 The paper aims to explore four aspects 1. To outline the pervasive logic of smartness and what it constitutes as a policy objective/narrative for the EU 2. To explore that this pervasive logic of smartness leads to a set of smart operational logics that provide both complimentary and competing implications for regions in terms of policy choice (the logic of logics) 3. To argue that the differing natures of regions, such as, their particular comparative advantages, and situations of stability/instability imply that regions will have to make smart choices about which operational logics of smartness they will prioritize and thus follow a logical smart choice about smart operational logics (being smart about smartness) 4. These investigations will help to discover if regions are also involved in smart implementation of their preferred operational logics in line with EU smart specialisation ideas, in essence to what degree European regions are being smart about the smartness of the logic of logics

5 Europe 2020 and smart specialisation strategies: the pervasive logic of smartness Smartness is a notion closely associated with the EU policy domain since the introduction of the Europe 2020 Strategy, as European Commission advocates improving the EU s capabilities to manage and neutralize any negative impact of global economic pressure within the Union and its neighborhood through smart growth and development: Economic realities are moving faster than political realities, as we have seen with the global impact of the financial crisis. We need to accept that the increased economic interdependence demands also a more determined and coherent response at the political level (European Commission 2010). Smartness becomes a broader pervasive logic encouraging subnational-based entities to concentrate their resources on a few specific points of strengths that bolster comparative advantage and offer strong propensities for increased growth and competitiveness thus enhancing the core capacities of regional economies. By addressing the issue of prioritisation, this pervasive logic of smartness enables us to understand the dynamics underpinning the EU smart specialisation agenda. For the regions of Europe, the concept of smart specialisation may become as a better alternative to more universal policy that spreads investment across several frontier technology research fields without making much of an impact in any specific area (European Commission 2012).

6 Smart Specialisation as a concept The logic of specialisation is intact in the information age, particularly for small entities such as regional economies in Europe. As innovative policy concept, it emphasizes the principle of prioritization in a vertical logic and defines a method to identify desirable areas for innovation policy intervention (Foray et al. 2009; European Commission 2010; etc.) The task of specialisation (i.e. identification of the points of growth = niche areas of competitive strength) is very difficult and therefore needs a sophisticated policy design (European Commission 2010). The idea is well in line with the European Commission's growth strategy EU 2020 and its response to the economic and financial crises impact. Smart specialisation can help solving societal challenges through innovation partnerships and greater co-ordination between different societal stakeholders, and aligning strategies between private and public actors of regional and local levels of governance.

7 The operational logics of smartness The differing operational logics provide for European regions to be involved in smart choices about which logics they will seek to prioritise more than others within the general context of the EU smart specialisation strategy and the EU s overall and prevailing logic of smartness: 1. Operational Logic of Smart Innovation: aimed at increasing the crisis recovery capabilities of the Union, it seeks to encourage innovation, via greater prioritization and resource allocation to R&D in regions (e.g. increased start-up and innovation support and Triple-Helix public-private partnerships through Cohesion Policy/Structural Fund instruments, EU Innovation Union and Horizon 2020 programmes). 2. Operational Logic of Smart Competitiveness: aimed at discovering new linkages, interdependences and mutual competitive benefits from place-based specialised cooperation in order to encourage smart growth (greater support for SME s, strengthening synergies between Cohesion Policy and other funding instruments, strengthening of the Single European Market (SEM), stimulating competition and consumer inclusiveness, entrepreneurial discovery, constant process of learning). 3. Operational Logic of Smart Growth: aimed at providing efficient and concentrated policy measures favoring certain technologies, fields and sub-systems, including skills enhancement of regional workforces and labor.

8 The operational logics of smartness 4. Operational Logic of Smart Modernisation: aimed at solving complex social-economic problems caused by structural constraints and backwardness of key regional infrastructure and development (support for SMEs under the current CP programming period to double the present support to around 140 billion for , through the increased use of grants, loans, venture capital, tap into business know-how and advice, cross-border partnerships). 5. Operational Logic of Smart Institutional Capacity Building can be revealed via efficient policy elaboration aimed at deploying smart specialisation in the regional development realm and consisting of focused policy measures that favor certain choices of technologies, fields or sub-systems and employing EU Cohesion policy and Structural Funds as the key delivery mechanisms for achieving the smart growth priorities at the national and regional levels. 6. Operational Logic of Smart Europeanisation: The EU Strategy 2020 seeks to ensure that regions recognize the role of the Europe 2020 in providing additionality and ensure that regional policies also incorporates awareness of EU-wide, rather than just national or even regional objectives, through encouraging trans-border co-operations and consortiums to build regional critical mass and confidence among regional partners in the EU as a strategic partner.

9 Smart choices and smart implementation of Swedish regions: Favoring the Operational Logics of Smart Innovation, Competitiveness and Growth Sweden is an interesting case for studying examples of smart choices and smart implementation : post-industrial, prosperous and stable country with one of the best records in the EU in terms of innovation, the regions have adopted a qualitative approach to regional development, smart specialisation is strongly associated with regional innovation (VINNOVA) strategies and growth planning (Tillväxtverket). Indicative experience of the regions of North Middle Sweden (NUTS 2 basic regions for the application of regional policies), studied from the regional innovation plans and strategies: Värmland: shows a clear preference for operational logics of smart innovation, competitiveness and growth (Paper Province, innovative Information Communication Technology (ICT) sector in control systems for the forestry industry, Triple-Helix cooperation with a growth in the number of industrial research institutions, e.g., Karlstad University) (Region Värmland 2013).

10 Smart choices and smart implementation of Swedish regions: Favoring the Operational Logics of Smart Innovation, Competitiveness and Growth Gävleborg: rich in coal and other minerals, the region developed rapidly as a center for mining and steel production, machine manufacturing (steel and paper industries - Sandvik in Sandviken and Ovaco in Hofors, SMEs and subcontractors, Triple Steelix which works with the entire steel industry and its supply chain to support the R&D (Region Gävleborg 2013). Dalarna: tourism has been identified as a key innovative industry; also a known learning region developing in a close collaboration with its Norwegian neighbors in order to foster growth through strategizing local, regional and national actors to build cooperation in the specific areas of skill supply, regulations, and infrastructure, and similarly investing in tourism clusters (Region Dalarna 2013).

11 Logic of Smart Growth for Ukraine: Favoring Operational Logics of Smart Modernisation, Institutional Capacity Building and Europeanisation? Europeanisation: For Ukraine on a new stage of its European integration and at the intersection of various European development programmes, the challenges of innovation and sustainability weaknesses of its economy can be addressed (European Neighborhood Instrument, EU Strategies for the Baltic Sea and Danube regions), through: further state transformations and reforms, fostering trade and strengthening of economic stability, increased innovation and entrepreneurship. Having no current replica of smart specialisation in its political discourse, Ukraine is introducing the aspects of smart implementation of growth to the activities of the government, aimed at: governmental adaptation to the needs of innovation-focused regional development agenda set by European Commission, solving of the complex social-economic problems caused by structural backwardness of economic system (Verkhovna Rada of Ukraine 2009; Cabinet of Ministers of Ukraine 2006; 2009; 2014).

12 Logic of Smart Growth for Ukraine: Favoring Operational Logics of Smart Modernisation, Institutional Capacity Building and Europeanisation? Modernisation: Technologically weak state economy, obtained as a soviet legacy together with ineffective entrepreneurial system formed under pressure of the active external neoliberal reforms, make the introduction of innovations and R&D in Ukraine almost impossible. The operational logic of modernisation applied to implementing smart growth strategies on the national level, should: help meet the need for defining of the modern innovative-investment model of economic development, raise effectiveness of the national innovative system and the level of competitiveness at international arena, favor the increase in social growth (Verkhovna Rada of Ukraine 2009). Prioritisation of specific sectors of economy that are defined by the government (2014) as having best potential for innovations (agriculture and food supply, light industry and pharmacy), instead of favoring prioritisation of the main sectors of production (steel and mining sector, railway transportation and inorganic chemistry), should make stimulating of the regions points of strength more balanced.

13 Logic of Smart Growth for Ukraine: Favoring Operational Logics of Smart Modernisation, Institutional Capacity Building and Europeanisation? Institutional capacity building: By applying the R&D-focused policies, the regional institutions capacities in building effective policies for solving regional disparities and issues of territorial differentiation (in the focus of the state regional policies yet from 2000) could be strengthened. The current acute crisis in Ukrainian regions has reinsured the need for a new complex state program measures to overcome the regional disparities, among other, through: supporting the innovative capacities of the regions, raising their competitiveness and access to international markets (the case of eastern regions one-side focus on cooperation with Russia) activation of the local economic initiative, improving the rural areas potential, providing social-economic coherence and parity in regional development (State Strategy of Regional Development 2020, Cabinet of Ministers 2014).

14 Thank you! Viktoriia Panova Karlstad University Department of Political, Historical, Cultural and Religious Studies